There’s no question that high home prices in Silicon Valley makes it difficult for first-time home buyers to purchase homes. Difficult…but not necessarily impossible. Recently (past year), qualification requirements have eased somewhat for many higher balance programs including the minimum … Read the rest
Net Tangible Benefit
Refinancing a mortgage must make sense…and by “make sense” I mean to the lender receiving the application. For refinance transactions, lenders require that the loan provide a documented “Net Tangible Benefit” to the client.
Lowering interest rate and/or payment, or … Read the rest
Regulated Honesty
Business regulations, including extensive ones governing financial services and lending industries, would be unnecessary if all business people operated honestly.
One of the regulations in RESPA (Real Estate Settlement and Procedures Act) addresses “kickbacks”. It’s illegal to pay commissions, referral … Read the rest
Credit Scores – How They Affect Mortgage Loan Cost
Credit, with debt-to-income ratio and equity, is a critical factor in determining mortgage loan approval. And, for approved applicants, credit score plays a major role in determining loan costs.
For example; let’s assume a mortgage amount of $400,000, 80% of … Read the rest
Loan Qualification – Not a Mystery
Despite numerous regulatory changes, new disclosure requirements, and lending restrictions, the same basic loan qualification factors still apply. Does a potential borrower earn enough to be able to make payments on all their monthly obligations? Have they shown consistent willingness … Read the rest
Misconceptions about reverse mortgages
A lot of people who might benefit from a reverse mortgage have misconceptions about them. Fact: a reverse mortgage is just like any other mortgage in regards to homeowner rights….with one exception. Unlike a forward mortgage where, after a reasonable … Read the rest